Labuan /ləˈbuːən/ (Jawi: لابوان), officially the Federal Territory of Labuan (Malay: Wilayah Persekutuan Labuan, Jawi: ولايه ڤرسكوتوان لابوان), is a federal territory of Malaysia. It is made up of the eponymous Labuan Island and six smaller islands, and is located off the coast of the state of Sabah in East Malaysia. Labuan's capital is Victoria and is best known as an offshore financial centre offering international financial and business services via Labuan IBFC since 1990 as well as being an offshore support hub for deepwater oil and gas activities in the region. It is also a tourist destination for people travelling through Sabah, nearby Bruneians and scuba divers. The name Labuan derives from the Malay word labuhan which means harbour. Labuan is often referred to as the pearl of Borneo.
Sabah (Malay pronunciation: [saˈbah]) is a state of Malaysia located on the northern portion of Borneo Island. Sabah has land borders with the Malaysian state of Sarawak to the southwest, and Indonesia's Kalimantan region to the south. The Federal Territory of Labuan is an island just off the Sabah coast. Sabah shares maritime borders with Vietnam in the west and the Philippines to the north and east. Kota Kinabalu is the capital city, the economic centre of the state and the seat of the Sabah state government. Other major towns in Sabah include Sandakan and Tawau. As of the 2015 census in Malaysia, the state's population is 3,543,500. Sabah has an equatorial climate with tropical rainforests and abundant animal and plant species. The state has long mountain ranges on the west side which form part of the Crocker Range National Park. Kinabatangan River, second longest river in Malaysia runs through Sabah and Mount Kinabalu is the highest point of Sabah as well as of Malaysia.
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